Not many people know, but one can now open a savings account in a Post Office. With the Government of India pushing to make banking services available to all, especially those hailing from rural and semi-rural areas, Post Offices now are offering savings account schemes at attractive interest rates. Catering to different sections of the population, Post Offices have rolled out savings accounts and schemes- from a regular post office savings account, to a senior citizen savings account, etc. Customers holding a savings account with a post office can subscribe to various savings schemes through their account.
Types of Post Office Savings Schemes Accounts
Listed below are the types of saving scheme accounts offered by Post Offices across the country:
- Post Office regular savings account
- Post Office time deposit account (TD)
- Post Office recurring deposit account (RD)
- Post Office monthly income deposit account (MIS)
- Public Provident Fund account (PPF)
- Sukanya Samriddhi Yojana Account (SSY)
- Kisan Vikas Patra (KVP) account
- National Savings Certificate (NSC)
- Senior Citizen savings scheme
Features and Benefits of Post Office Savings Account
Some of the features and benefits of a Post Office savings account are listed below:
- To open a Post Office savings account, customers have to make the initial deposit in cash.
- Post Office account holder can make nominations to their account. The nominee can operate the account on behalf of the account holder.
- As per the wish of the account holder, the savings account can be transferred from one Post office to another - in case the account holder has shifted his/her house.
- Customers can open only one savings account in a post office.
- Parents and guardians can open a savings account on behalf of minors.
- Minors above the age of 10 years can open and operate a post office savings account independently.
- A post office savings account can be opened either by an individual or joint.
- For the savings account to be deemed operational, account holders will have to make at least one transaction in three years.
- Customers are offered a debit card when opening the post office savings account.
- Individual savings accounts can be converted to a joint account on provision of KYC documents of the second party.
- Customers can transfer the balance in their account from one post office to another following a transfer.
- Depending on the type of savings account a customer opts for, he/she will be required to maintain a minimum balance.
- Using the debit card that is offered when opening the account, account holders can make withdrawals from any ATM across the country.
- Savings up to Rs.10,000 inclusive of the interest are exempt for tax under section 80L of the Income Tax Act.
Steps to Open Post Office Savings Account
Customers have to follow the steps mentioned below to open a Post Office savings account:
- Visit any Post office closest to you.
- At the post office, request for the savings account application form.
- Fill in the post office savings account application form.
- Submit the required KYC documents - identity and address proof.
- Submit recent passport size photographs.
- Once the form, documents and photographs have been submitted, make the initial deposit towards the account. The deposit has to be made in cash.
Documents Required to Open Post Office Savings Account
Customers will have to submit the following documents along with the application form for a savings account:
- Address proof - Driver’s license, Voter ID card, Aadhaar card, telephone or electricity bill, etc.
- Identity proof - Passport, Aadhaar card, Driver’s license, Voter ID, etc.
- 2 recent passport size photographs.
- Post office savings account application form.
- Minimum balance required to open a savings account - in cash.
Eligibility Criteria for Post Office Savings Account
Listed below is the eligibility criteria that has to be met for one to hold a post office savings account:
- Should be a resident of India.
- Any minor above the age of 10 years can open a post office savings account independently.
- Should have valid KYC documents.
Post Office Savings Account Scheme Minimum Balance Requirement
Listed below is the minimum balance requirement for the regular savings account as well as for the post office saving schemes.
|Type of account||Minimum balance requirement|
|Savings account with cheque book||Rs.500|
|Savings account without cheque book||Rs.50|
|Post Office monthly income deposit account||Rs.1,500|
|Post Office time deposit account||Rs.200|
|Public Provident Fund||Rs.500|
|Senior Citizen savings account||Rs.1,000|
Post Office Savings Account Charges
Listed below are the charges for a savings account:
|Features of the savings account||Charges applicable|
|Minimum deposit requirement||Rs.100|
|Maximum balance in a savings account||Rs.1 lakh|
|Debit card charges||Free|
|Account maintenance charge for a year||Rs.100 (applicable from the second year onwards)|
|Regeneration of PIN||Rs.50|
|Monthly account statement request||Free|
|ATM withdrawals at IndiaPost ATMs||Free|
|ATM withdrawals at Punjab National Bank ATMs||Free|
|Withdrawals from other bank ATMs (metro)||Free for first three transactions|
|Withdrawals from other bank ATMs (non-metro)||Free for first five transactions|
|Additional transactions at other bank ATMs||Financial: Rs.20 Non financial: Rs.8|
|Maximum ATM withdrawal amount per transaction||Rs.10,000|
|Maximum ATM withdrawal amount per day||Rs.25,000|
|Spending limit per day (at POS terminals or online)||Rs.65,000|
|NEFT||Rs.2.5 per transaction up to Rs.10,000 (at the post office branch) Free from mobile banking For fund transfers between Rs.10,000 - Rs.1 lakh - Rs.5 per transaction will be charged Free from mobile banking|
|IMPS||Fund transfers upto Rs.1 lakh - Rs.5 per transaction (from post office branch), Rs.4 per transaction (from mobile banking)|
|AEPS||Free up to Rs.10,000 (from post office branch) Mobile banking - Not applicable|
|UPI||Rs.4 per transaction up to Rs.1 lakh (mobile banking)|
1. Is it possible to claim the balance in a post office savings account following the death of the primary account holder?
If the one claiming the amount in the post office savings account is a nominee, only the provision of the death certificate of the primary account holder will be enough. If no nominee has been assigned, the legal heir of the primary account holder can claim the amount on provision of the succession certificate.
2. Is the application form for the post office regular savings account and saving schemes the same? Where can I get it?
No, the regular savings account application form and the application forms for the savings schemes are different. The form can be accessed at any post office across the country.
3. Can a post office savings account be deemed inoperational? How so?
Yes, a post office savings account can be deemed inoperative if the account holder has failed to make a single transaction from the account for a span of three consecutive years.
4. Is there a separate norm for a cheque book request when holding a post office savings account?
To be eligible to request for a cheque book, the minimum balance in the post office savings account should be Rs.500.
5. Is it possible to transfer a post office savings account from one post office to another?
Yes, in case you are shifting your house, you can transfer your savings account in the current post office to one closest to your new house. For this, you will have to submit the transfer form SB 10(b) at your current post office holding your savings account for the account to be shifted to a post office of your choice.